1. 11 September 2008 1 Defence Efforts International Comparison Attempt 2008 Edition Most of the comparisons focus on implemented budgets (2007 data are the last available information). EuroDéfense France École militaire – BP 44 – 75007 Paris, France Phone/Fax: +33 (0)1 44 42 42 15 Email: eurodefense-france@wanadoo.fr

2. 11 September 2008 2 Comments Methodology Official statistics can induce biases of understanding since, for historical or methodological reasons, they are not presented through similar parameters or identical definitions (for instance, pensions are not systematically included in the defence budget). EuroDéfense's approach aims at providing an analytical and interpretative framework of defence efforts by presenting, as much as possible, data: - related to implemented budgets and not voted ones, which helps underlying the effective defence effort of the selected countries; - without pensions, to facilitate comparisons with countries which do not finance them through their defence budget; - in taking account, for pro forma comparisons, of only defence-related spending of French Gendarmerie and Italian Carabinieri; - in purchasing power parities when possible, since it helps correct the effects of short-term exchange rates fluctuations and the under- or over-evaluations of national currencies; - in euros, in other cases, to facilitate international comparisons, by using the average annual exchange rates established by the European Central Bank; - in constant values, to make long-run comparisons possible without the deforming effects of inflation over long-run series. Note on the United States The budget of Pentagon does not include expenditures realized by the Department of Energy in the field of nuclear deterrence, which represent an annual average budget of 22.3 billion dollars over the 2006-2012 period. A large share of American military expenditures in Iraq and Afghanistan are not directly included in the DoD budget, but supported by specific supplemental budgets voted each year by the Congress. Therefore truly implemented or already-voted expenditures are included in the Outlays* aggregate, but DoD expenditure forecasts do not take account of them. Note on the United Kingdom The new public finance system adopted in 2002 by the United Kingdom makes uneasy the distinction of expen- ditures by nature because of a so-called "commercial" accounting system, which tends to globalize expenditures by mission. Data presented here correspond to guesstimates based on EuroDéfense analyses. Note on France France has been using a new public finance nomenclature, known as LOLF (Loi organique relative aux lois de finances), since fiscal year 2006. This approach in terms of missions and programmes is going to reduce the preciseness of information in a similar way as it happened in the United Kingdom since 2002. * DoD Comptroller Office Definition : "Outlays, or expenditures, are the liquidation of the Government's obligations. Outlays generally represent cash payments."

3. 11 September 2008 3 Defence expenditures as % of GDP 2001-2007 (NATO standard or alike, without pensions) V2: French gendarmerie and Italian carabinieri with a rate of military activity at 5% and 15%, respectively; including funds provided by Industry or Research Ministries.

4. 11 September 2008 4 2,732,722,65 2,632,47 4,55 ratio USA/EU 27 4,53 4,35 0,730,69 4,37 4,39 4,60 V2: French gendarmerie and Italian carabinieri with a rate of military activity at 5% and 15%, respectively; including funds provided by Industry or Research Ministries. United States / European Union 2004-2006 (OTAN V2 standard or alike, without pensions) Defence expenditures (billion PPP euros) Capital expenditures (billion PPP euros, production + R&D + tests) United States 27 countries of the European Union Military personnel (millions) Defence expenditures per inhabitant (PPP euros) Capital expenditures per inhabitant (PPP euros)

5. 11 September 2008 5 Global budget RDT&E Procurement US Defence Budget 1950-2013 (DoD-051 Outlays) NB: "Global War on Terrorism" operations included up to 2009.

6. 11 September 2008 6 Source: US Census Bureau European Union /United States arms trade (millions dollars) EU United States United States EU

7. 11 September 2008 7 Source: US Census Bureau Imports of US military equipment (millions dollars)

8. 11 September 2008 8 Source: US Census Bureau Exports of military equipment towards the US (millions dollars)

9. 11 September 2008 9 42,1 31,0 25,0 14,4 10,8 V2: French gendarmerie and Italian carabinieri with a rate of military activity at 5% and 15%, respectively; including funds provided by Industry or Research Ministries. Defence expenditures, real expenses (without pensions, billion 2007 euros)

10. 11 September 2008 10 20,8 4,8 7,3 14,7 3,4 V2: French gendarmerie and Italian carabinieri with a rate of military activity at 5% and 15%, respectively; including funds provided by Industry or Research Ministries. New rules of public finances Equipment expenditures (excl. infrastructures, R&D and MRO included, billion 2007 euros)

11. 11 September 2008 11 Share of equipment expenditures in the total defence budget (without infrastructure and pensions, R&D and MRO included)

12. 11 September 2008 12 V2: French gendarmerie and Italian carabinieri with a rate of military activity at 5% and 15%, respectively; including funds provided by Industry or Research Ministries. Equipment expenditures per soldier (OTAN standard, thousand euros)

13. 11 September 2008 13 V2: French gendarmerie and Italian carabinieri with a rate of military activity at 5% and 15%, respectively. Military personnel (NATO standard)

14. 11 September 2008 14 Personnel expenditures (civil and military, billion 2007 euros) New rules of public finances

15. 11 September 2008 15 1996: 831 billion dollars2007: 1214 billion dollars 30,8% 12,5% 46,3%44,4% 12,5% 21,5% +46.1% 5,2% 6,5% Russia included in "Central/Eastern Europe " Source: Stockholm International Peace Research Institute World military expenditures in 1996 and 2007 (constant 2005 dollars, market exchange rates)